Low prices create great time to buy gold for retirement

Due to recent price declines, now may be a great time for people to buy gold as they build up their nest egg.

The commodity can be purchased at a significant discount to the price it reached over the last few years, since it is now approximately 25 percent lower than it was at the start of 2013, Reuters reports.

In June, gold declined to its lowest value in 34 months, according to Bloomberg. This happened after it fell into a bear market in April, having plunged 20 percent from its all-time high reached late in 2011.

The precious metal can provide an important hedge for the portfolios of those who are looking to save up enough to retire. Since the metal has frequently moved out of tandem with other asset classes, it can be used to help the buyer diversify his or her assets.

Also, there are many people who believe that gold is the only true currency, which could make it extremely valuable in the event that fiat currencies lose their value due to substantial inflation. As a result of all these factors, individuals who are putting together retirement portfolios may want to buy gold.